Allegro Microsystems Inc (ALGM)

Return on equity (ROE)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Net income	US$ in thousands	152,697	187,357	119,407	17,953
Total stockholders’ equity	US$ in thousands	1,130,440	965,628	734,207	585,752
ROE		13.51%	19.40%	16.26%	3.06%

March 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $152,697K ÷ $1,130,440K
= 13.51%

Allegro Microsystems Inc's Return on Equity (ROE) has shown fluctuating trends over the past four years. In the most recent fiscal year ending March 31, 2024, the ROE decreased to 13.51% from 19.40% in the previous year, which indicates a decline in the company's ability to generate profits from shareholders' equity. The ROE was notably higher in FY 2023 compared to FY 2022 and FY 2021, suggesting a strong performance in terms of utilizing equity to generate earnings. However, the significant drop in ROE in FY 2024 could be a cause for concern and warrants further investigation into the factors affecting the company's profitability and efficiency in utilizing shareholder funds. An in-depth analysis of the company's financial and operational performance is required to fully understand the reasons behind the fluctuating ROE.